AITMC Business Overview
AITMC Ventures Pvt. Ltd. (AVPL), founded in 2016 by Deep Sisai, aims to modernize Indian agriculture through drone technology. It empowers farmers with advanced tools and training to promote sustainable agricultural practices and enhance farm productivity. AVPL is accredited as a "Category A" training partner by the National Skill Development Corporation (NSDC).
Core Operations
AVPL's core operations consist of four key initiatives: Training and Development, Drone Technology Integration, Dronepreneurs Program, and Farmers' City Mart Initiative.
1. **Training and Development:** Focuses on enhancing the skill sets of farmers by integrating technology with traditional farming techniques.
2. **Drone Technology Integration:** AVPL has implemented drone solutions for various agricultural needs such as sowing, pest control, and crop surveillance.
3. **Dronepreneurs Program:** Trains individuals to operate and manage drone services for agriculture, termed 'Dronepreneurs.'
4. **Farmers' City Mart Initiative:** AVPL launched Farmers' City Mart as a platform to support the agricultural supply chain.
Market Impact and Growth
AVPL has impacted over 10,00,000 farming families. The company has established touch points across 10 states and union territories of India and aims to extend its footprint across the whole of India covering 500 districts. The global agricultural drone market is poised for expansion, and AVPL's strategic positioning within this market is expected to yield substantial growth.
Strategic Partnerships
AVPL has formed strategic partnerships with:
1. **Punjab Kings:** To broaden the company's reach and influence.
2. **United Phosphorus Ltd. (UPL):** To boost AVPL's stakeholder engagement by setting up 50 facilities dedicated to training 50,000 agripreneurs. Collaboration started in March 2023.
3. **Bharat Scouts and Guides Association:** To engage youth in agricultural innovation through comprehensive skill development programs.
AITMC Financial Structure Overview
As per the Director's Report, in FY 2023-24, AITMC has shifted its business towards UAV's and agribusiness industry. During FY 2022–23, SPH Aviation Pvt Ltd. and Farmers City International Pvt Ltd. became subsidiaries of the company with effect from 05.01.2023 and 06.02.2023 respectively; AITMC holds 76% equity shares in both companies. SPH Aviation Private Limited (SAPL) was incorporated in 2022 to carry on the business to establish, maintain, and operate air transport and provide aviation-related services. Farmers City International Private Limited (FCIPL) was incorporated in 2019 and is engaged in providing education and training activities and trading food products, with its registered office in Haryana.
Drone Market Overview
As per EY and FICCI report, India's drone industry is expected to grow from ₹2,900 crore in 2020 to ₹81,600 crore in 2025 and reach ₹2.95 lakh crore by 2030. The sectors with the highest demand for drones will be defense and agriculture.
Financial Performance of AITMC
In FY 2022-23, Total Revenue was 2201.93 (Fig. in Lakh), PBT was 667.62 (Fig. in Lakh), and PAT was 443.14 (Fig. in Lakh). The current ratio is 1.82, the Debt Equity ratio is 0.17, ROE is 38%, and ROCE is 44%. The cash flow from operating activities for FY 23 is 629.54 (Fig. in Lakh).
Financial Performance of Subsidiaries (FY 23)
* SPH Aviation Pvt Ltd.: Revenue - 1540 (Fig. In Lakh), PBT - 323.76 (Fig. In Lakh), PAT - 250.67 (Fig. In Lakh).
* Farmers City International Pvt Ltd: Revenue - 5458.57 (Fig. In Lakh), PBT - 3058.08 (Fig. In Lakh), PAT - 2110.12 (Fig. In Lakh).
Risk Factors
1. **Trade Payables:** AITMC has trade payables of around INR 7.55 crore outstanding as of 31.03.2023, which is high for a service-based company.
2. **Long-term Outstanding Payables:** INR 2.50 crore of the INR 7.55 crore has been outstanding for more than three years, suggesting potential liquidity or financial health issues.
3. **Client Information and Trade Receivables:** There is a need to identify the clients to whom AITMC is providing services, especially with more than INR 17 crore on sales of INR 22 crore in 2023.
Valuations of AITMC
The anticipated IPO price is around ₹35 per share. CMP (Rs. Per share) is 60, No of Equity shares is 6.83 Cr, and Market Cap is 409.80 Cr. The company's market valuation appears to be quite high, and there is a significant number of sellers. The AITMC IPO seems very risky due to its lofty valuation and the large volume of sellers.
